ABN Amro gets new 4.4bn-euro bail-out

The Dutch government has announced it will inject a further 4.4bn euros ($6.5bn; £3.9bn) into ABN Amro.

The injection will take the form of 3bn euros in cash and 1.4bn euros in long-term bonds, which are being converted into equity.

The money is being used to help the bank merge with the Dutch assets of Fortis, also under government control.

The Dutch government saved both banks from bankruptcy in October 2008 in an 16.8bn-euro bail-out.

This was followed by further 2.4bn-euro injection in June this year to help ABN Amro fund the split of its Dutch assets from those owned by Royal Bank of Scotland (RBS).

A consortium including Fortis, RBS and Spain's Santander bought ABN Amro for 70bn euros in 2007 just before the beginning of the global financial crisis.

Dutch finance minister Wouter Bos said the latest government injection should be seen "as an investment that will pay itself back in the form of a new, profitable bank".

He also said the cash infusion would be the last granted by the government, which hopes to sell or list the bank on the stock exchange in the future.

Source : BBC News